**DA 02-2579**

**Released: October 8, 2002**

**DOMESTIC SECTION 214 APPLICATION FILED FOR ACQUISITION OF ASSETS OF
TELSEON CARRIER SERVICES, INC. BY ONFIBER CARRIER SERVICES, INC.**

**STREAMLINED Pleading Cycle Established**

**WC Docket No. 02-232**

On July 26, 2002, OnFiber Carrier Services, Inc. ("OnFiber Carrier") and
OnFiber Carrier Services-Virginia, Inc. ("OnFiber-Virginia")
(collectively, the "OnFiber Entities") and Telseon Carrier Services,
Inc. ("Telseon Carrier") and Telseon Carrier Services of Virginia, Inc.
("Telseon-Virginia") (collectively, the "Telseon Entities") (altogether,
the "Joint Applicants"), filed an application for authorization pursuant
to section 214 of the Communications Act of 1934, as amended, 47 U.S.C.
§ 214, to transfer control of lines through the sale of certain
telecommunications assets from the Telseon Entities to the OnFiber
Entities in California, Colorado, the District of Columbia, Florida,
Georgia, Illinois, New Jersey, New York, Pennsylvania, Texas, Virginia,
and Washington.[^1]

Applicants assert that this application is subject to streamlined
processing under section 63.03(b)(2)(i) of the Commission's rules
because the OnFiber Entities will have a market share in the interstate,
interexchange market of less than 10 percent; the OnFiber Entities will
be providing telecommunications services only in geographic areas served
by a dominant local exchange carrier that is not a party to this
transaction; and none of the Joint Applicants is dominant with respect
to any service.[^2]

The OnFiber Entities are wholly-owned subsidiaries of OnFiber
Communications, Inc. ("OnFiber Communications"). The OnFiber Entities
currently are authorized to provide resale and facilities-based local
exchange and interexchange services in approximately 20 states. They
operate fiber optic networks in major metropolitan areas, delivering
broadband connectivity services principally to other carriers and
Internet Service Providers ("ISPs") through SONET, Ethernet, and Optical
Wavelength product offerings. OnFiber Communications is a Delaware
corporation located at 8101 E. Prentice Avenue, Suite M202, Englewood,
CO 80111.

The Telseon Entities are wholly-owned subsidiaries of Telseon, Inc. The
Telseon Entities are currently authorized to provide resale and
facilities-based local exchange and interexchange services in
approximately 19 states. They provide a wide range of broadband and
high-speed digital private line services principally to other carriers
and ISPs over fiber optic networks in major metropolitan areas. Telseon,
Inc. is a Delaware corporation located at 7887 East Belleview Avenue,
Suite 600, Englewood, CO 80111.

On June 26, 2002, by Letter Agreement (the "Letter Agreement"), OnFiber
Communications and Telseon IP Services, Inc., Telseon Carrier Services,
Inc., Telseon Carrier Services of Virginia, Inc., and Telseon, Inc.
(collectively, the "Telseon Companies") agreed to a transaction pursuant
to which OnFiber Communications will purchase substantially all of the
assets and assume certain of the liabilities of the Telseon Companies
(the "Transaction").[^3]

The Joint Applicants assert that grant of this application will serve
the public interest because it will avoid the Telseon Companies' filing
for bankruptcy based on their precarious financial situation. Moreover,
the Joint Applicants state that the transfer of the assets to the
OnFiber Entities will increase competition in the domestic
telecommunications markets by making it possible for the OnFiber
Entities to expand their market reach. The Joint Applicants assert that,
given the difficult times faced by competitive carriers, it is all the
more important to preserve existing competitive facilities-based options
and robust local competition in the local and interexchange
telecommunications markets.

**[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.[^4] 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) Bill 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>; 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 Bill Dever, Competition Policy, Wireline Competition Bureau at (202)
418-1578.

\- **FCC** -

[^1]: The Joint Applicants supplemented their application with a request
    for special temporary authority (STA) for OnFiber to operate the
    Telseon assets pending Commission action on their pending
    application "to save Telseon from an impending financial crisis, as
    well as to avoid a potential bankruptcy filing by Telseon." *See*
    Letter from Enrico C. Soriano, Kelley Drye & Warren LLP, to Marlene
    H. Dortch, Secretary, Federal Communications Commission, WC Docket
    No. 02-232 (filed Aug. 27, 2002); Letter from Enrico C. Soriano,
    Kelley Drye & Warren LLP, to Marlene H. Dortch, Secretary, Federal
    Communications Commission, WC Docket No. 02-232 (filed Aug. 15,
    2002). The information in the STA request indicated the possibility
    of an unauthorized transfer of control. Any action on the Joint
    Applicants' transfer of control application does not preclude or
    prejudice any enforcement action related to an unauthorized transfer
    of control.

[^2]: 47 C.F.R. § 63.03(b)(2)(i).

[^3]: Although OnFiber Communications, and not OnFiber, is the actual
    party to the Letter Agreement, the Telseon Entities' regulated
    assets in the relevant states will ultimately be transferred to the
    OnFiber Entities. The OnFiber Entities will be the operating
    entities in the relevant jurisdictions, and OnFiber Communications
    will remain the holding company.

[^4]: *See* 47 C.F.R. § 63.03(a).