**DA 08-1929**

> **Released: August 19, 2008**

**DOMESTIC SECTION 214 APPLICATION FILED FOR THE TRANSFER OF CONTROL**

**OF SWISHER TELEPHONE COMPANY FROM TELEPHONE ACQUISITION**

**COMPANY, LLC TO SOUTH SLOPE COMMUNICATIONS COMPANY**

**non-STREAMLINED Pleading Cycle Established**

**WC Docket No. 08-164**

**Comments Due: September 2, 2008**

**Reply Comments Due: September 9, 2008**

On August 5, 2008, Telephone Acquisition Company, LLC (TAC) and South
Slope Communications Company (South Slope, collectively Applicants)
filed an application pursuant to sections 63.03 and 63.04 of the
Commission's rules[^1] requesting approval to transfer control of
Swisher Telephone Company (STC) from TAC to South Slope.

The Applicants do not seek streamlined treatment for this application
under section 63.03(b) of the Commission's rules.[^2] STC is an
independent, incumbent local exchange carrier (LEC) that provides local
exchange telephone and exchange access services to a single exchange
serving the area in and around the City of Swisher in Johnson and Linn
counties in east central Iowa. South Slope, an Iowa corporation, is
wholly owned by South Slope Cooperative Telephone Company (South Slope
Cooperative), also an Iowa corporation. South Slope does not offer
telecommunications services. South Slope Cooperative is an independent,
incumbent LEC serving the Amana, Ely, Fairfax, Newhall, Norway, and
North Liberty exchanges in Benton, Johnson, Linn, and Iowa counties in
east central Iowa. South Slope Cooperative also provides local exchange
services to the majority of customers in the Oxford, Solon, and Tiffin
exchanges in Johnson County.[^3] In addition, South Slope Cooperative
provides incumbent LEC services in the Coralville, South Cedar Rapids,
Shueyville, Walford, and Watkins exchanges in Benton, Johnson, Linn,
Iowa, and Cedar counties. Applicants state that the Swisher exchange
served by STC is adjacent to South Slope Cooperative's Ely, Fairfax, and
North Liberty exchanges. Applicants further state that STC and South
Slope Cooperative are incumbent LECs that have, in combination, fewer
than two percent of the subscriber lines installed in the aggregate
nationwide and no overlapping service areas, but, because of the
adjacent service areas the Applicants have identified, this application
is not entitled to presumptive streamlined treatment.[^4]

TAC, an Iowa limited liability company, acquired control of STC on May
15, 2008 and now seeks to sell the stock of STC to South Slope. TAC was
formed by four U.S.-based telephone companies that each own 25 percent
of the equity of TAC: Interstate Enterprises, Ltd. (Interstate),
Schaller Telephone Company (Schaller), Farmers Mutual Telephone Company
d/b/a OmniTel Communications (OmniTel), and Breda Telephone Corp
(Breda).[^5] Interstate, Schaller, OmniTel, and Breda and their
affiliates provide incumbent LEC services in rural areas in Iowa, as
well as intrastate and interstate long distance services in their
incumbent LEC service areas.

Applicants state that South Slope Cooperative is a rural telephone
cooperative with approximately 14,350 member-owners, none of which owns
or controls 10 percent or more of the voting and/or equity interests,
either presently or after completion of the proposed transaction. In
addition to its local exchange and exchange access services, South Slope
Cooperative resells intrastate and interstate long distance service in
its local exchange service areas. Applicants further state that South
Slope Cooperative received certification to provide competitive LEC
services within the Swisher, Iowa exchange, but has not yet completed
construction of competitive LEC facilities or commenced provision of
competitive services there.

Pursuant to the terms of the proposed transaction, South Slope will
acquire all of the issued and outstanding Class A voting stock and all
of the issued and outstanding Class B non-voting stock from TAC. STC
will continue to exist as an Iowa corporation and as an incumbent LEC
that provides interstate exchange access services and interstate
interexchange services.

Applicants assert that a grant of the application will serve the public
interest, convenience, and necessity. The Applicants state that the
proposed transaction is in the public interest because, under South
Slope's ownership and control, STC will continue to provide quality
telecommunications services at affordable rates for the businesses and
residents of rural eastern central Iowa.

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

The transfer of control identified herein has been found, upon initial
review, to be acceptable for filing as a non-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. Pursuant to section 63.03(a) of the Commission's rules, 47 CFR
§ 63.03(a), interested parties may file comments **on or before
September 2, 2008** and reply comments **on or before September 9,
2008**. Comments may be filed using: (1) the Commission's Electronic
Comment Filing System (ECFS), (2) the Federal Government's e-Rulemaking
Portal, or (3) by filing paper copies. *See Electronic Filing of
Documents in Rulemaking Proceedings*, 63 FR 24121 (1998).

-   Electronic Filers: Comments may be filed electronically using the
    Internet by accessing the ECFS: <http://www.fcc.gov/cgb/ecfs/> or
    the Federal e-Rulemaking Portal:
    [http://www.regulations.gov](http://www.regulations.gov/). Filers
    should follow the instructions provided on the website for
    submitting comments.

-   For ECFS filers, if multiple docket or rulemaking numbers appear in
    the caption of this proceeding, filers must transmit one electronic
    copy of the comments for each docket or rulemaking number referenced
    in the caption. In completing the transmittal screen, filers 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, filers should send an e-mail to <ecfs@fcc.gov>, and
    include the following words in the body of the message, "get form."
    A sample form and directions will be sent in response.

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-   Paper Filers: 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, filers
    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. All filings must be addressed to the Commission's Secretary,
Office of the Secretary, Federal Communications Commission.

The Commission's contractor 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]{.underline} 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, Express, and
Priority mail should be addressed to 445 12th Street, S.W., Washington
D.C. 20554.

People with Disabilities: To request materials in accessible formats for
people with disabilities (braille, large print, electronic files, audio
format), send an e-mail to <fcc504@fcc.gov> or call the Consumer &
Governmental Affairs Bureau at 202 / 418-0530 (voice), 202 / 418-0432
(tty).

**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](http://www.bcpiweb.com/); 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-A103, Washington,
    D.C. 20554; e-mail: <tracey.wilson-parker@fcc.gov>;

3)  Michelle Sclater, Competition Policy Division, Wireline Competition
    Bureau, 445 12th Street, S.W., Room 5-C266, Washington, D.C. 20554;
    e-mail: <michelle.sclater@fcc.gov>; and

4)  Jim Bird, Office of General Counsel, 445 12th Street, S.W., Room
    8-C824, Washington, D.C. 20554; e-mail: <jim.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 Michelle Sclater at 202 / 418-0388.

-- FCC --

[^1]: 47 C.F.R. §§ 63.03, 63.04; *see* 47 U.S.C. § 214. Applicants are
    also filing applications for the transfer of control of wireless
    authorizations. Any action on this domestic section 214 application
    is without prejudice to Commission action on other related, pending
    applications. On August 15, 2008, Applicants filed a supplement to
    their domestic section 214 application.

[^2]: 47 C.F.R. § 63.03(b).

[^3]: Applicants state that South Slope Cooperative has had a petition
    pending since August 2004 to become an incumbent LEC in the three
    exchanges mentioned.

[^4]: 47 C.F.R. § 63.03(b)(2)(iii).

[^5]: Applicants state that Interstate is owned 100 percent by
    Interstate 35 Telephone Co., an Iowa corporation that has the
    following 10 percent or greater owners, who are U.S. citizens:
    Robert Mauer (35 percent), Virginia Mauer Cox (30 percent), Valerie
    Weis (30 percent). Schaller, an Iowa corporation, has the following
    10 percent or greater owners, who are U.S. citizens: Steve Reimers
    (46 percent), Missy Kestel (35.5 percent), and Joann Reimers (15.5
    percent). Applicants further state that no entity or individual owns
    more than 10 percent of the equity of OmniTel or Breda, both of
    which are Iowa corporations.