**DA 05-1795**

**Released: June 27, 2005**

**NOTICE OF STREAMLINED DOMESTIC 214 APPLICATION GRANTED**

**WC Docket No. 05-198**

On May 25, 2005, the Wireline Competition Bureau issued a public notice
seeking comment on the acquisition of assets of Transtel Communications,
Inc. (Transtel), Tel America of Salt Lake City, Inc. (Tel America),
Extelcom, Inc., (d/b/a Express Tel), by UCN, Inc. (UCN) (collectively
"Applicants").[^1] This application has been granted pursuant to the
Commission's streamlined procedures for domestic section 214 transfer of
control applications.[^2] The Wireline Competition Bureau has determined
that grant of this application serves the public interest.[^3]

The Commission received one comment in opposition to the proposed
transfer of control from APCC Services, Inc. (APCC), requesting that the
section 214 application be denied, or at least pulled from streamlining
for further review by the Commission.[^4] APCC filed an informal
complaint with the Commission on December 20, 2004 under the *Payphone
Compensation True-Up Order*,[^5] regarding an alleged debt owed by Tel
America to certain payphone providers represented by APCC.[^6] APCC
argues that if the instant section 214 application is granted, its
member's ability to collect a \$500,000 debt it claims is owed to its
members by Tel America may be hindered.[^7] APCC argues that Tel America
is in violation of the Commission\'s rules by not paying the
compensation.[^8] Secondly, APCC argues, "there is a significant
likelihood that the transferors would use the instant transaction to
attempt to evade payment of Tel America\'s compensation obligations"
because "it appears that Transtel, Tel America and Express Tel intend to
exit the common carrier industry."[^9] APCC further states that "once
the transaction is concluded, these entities may argue that they are no
longer common carriers and are therefore no longer subject to the
Commission\'s jurisdiction and cannot be subject to actions to collect
unpaid compensation pursuant to Sections 206-208 of the Communications
Act."[^10]

Tel America filed reply comments in response to APCC\'s comments, which
state in brief, that "(1) APCC\'s request to delay the transaction
should be rejected because it would serve only it\'s member\'s
interests, to the detriment of the broader public interest. (2) It would
be improper to delay the transaction on the basis of a disputed private
claim in a pending Commission complaint proceeding that has not yet been
adjudicated."[^11]

UCN, the transferee, also filed reply comments, which assert that "APCC
Services' comments are a bald attempt to use the pending Section 214
Application to resolve a dispute with one of \[Transtel\'s\] subsidiary
operating entities, Tel America, that arose over two years ago and has
no relation to the proposed transfer of Tel America\'s and Express
Tel\'s assets to UCN."[^12] UCN also states that because it attempts to
delay or prevent the completion of the transaction that is the subject
of this section 214 application, the position taken by APCC is not in
the interest of maintaining and improving communications service to
consumers and is therefore not in the public interest.[^13]

After careful consideration of the record in this proceeding, we
conclude that the concerns raised by APCC are not sufficient to persuade
us to remove the application from streamlined treatment. Nor do we find
it necessary to impose any conditions on the terms of the transfer. We
rely on the Applicants' assertions that it would be improper to delay
this transaction based on an unadjudicated claim in a pending Commission
complaint proceeding. We are satisfied, based on the record, that the
proposed transaction is in the public interest and should be granted
accordingly.[^14]

For purposes of computation of time for filing a petition for
reconsideration or application for review, or for judicial review of the
Commission's decision, the date of "public notice" shall be the release
date of this notice.[^15]

> **Effective Date of Grant:** 6/25/05

For further information, please contact Tracey Wilson-Parker, at (202)
418-1394 or Erin Boone, Competition Policy, Wireline Competition Bureau
at (202) 418-0064.

[^1]: Domestic Section 214 Application Filed For Acquisition of Assets
    of Transtel Communications, Inc., Tel America of Salt Lake City,
    Inc., Extelcom, Inc., to UCN, Inc., WC Docket No. 05-198, DA 05-1509
    (rel. May 25, 2005).

[^2]: 47 C.F.R. § 63.03.

[^3]: *Implementation of Further Streamlining Measures for Domestic
    Section 214 Authorizations,* CC Docket No. 01-150, Report and Order,
    17 FCC Rcd 5517, 5529, para. 22 (2002).

[^4]: *See* APCC Comments at 1.

[^5]: *Pay Telephone Reclassification and Compensation Provisions of the
    Telecommunications Act of 1996*, Fifth Order on Reconsideration and
    Order on Remand, 17 FCC Rcd 21274 (2002) ("*Payphone Compensation
    True-Up Order*").

[^6]: *See Re: Informal Complaint filed by APCC Services, Inc., et. al*.
    *Against Tel America of Salt Lake City, Inc.* (filed Dec 30, 2004).
    APCC Comments, Exhibit 1 at 1.

[^7]: *See* APCC Comments at 3.

[^8]: *See id*.

[^9]: APCC Comments at 5.

[^10]: *Id*.

[^11]: Tel America Comments at 3-5.

[^12]: UCN Comments at 2.

[^13]: *See id*.

[^14]: Our approval of this transaction does not prejudice or otherwise
    determine the outcome of the Commission's independent review of
    APCC's pending informal complaint proceeding or any subsequent
    formal complaint proceeding.

[^15]: *See* 47 C.F.R. § 1.4 (computation of time).