**DA 02-1845**

**Released: July 30, 2002**

**DOMESTIC SECTION 214 APPLICATION FILED FOR CONSENT TO TRANSFER CONTROL
OF DAKOTA COMMUNITY TELEPHONE, INC. AND MCLEODUSA TELECOM DEVELOPMENT,
INC. FROM MCLEODUSA INC. TO PRAIRIEWAVE COMMUNICATIONS, INC.**

**STREAMLINED Pleading Cycle Established**

**WC Docket No. 02-187**

On June 17, 2002, McLeodUSA Incorporated ("McLeodUSA"), filed an
application pursuant to section 214 of the Communications Act of 1934,
as amended, 47 U.S.C. § 214, for approval to transfer control of Dakota
Community Telephone, Inc., and McLeodUSA Telecom Development, Inc.
(collectively, the "Subsidiaries"), to PrairieWave Communications, Inc.
("PrairieWave"). PrairieWave is a newly formed privately held Delaware
corporation whose principal business is telecommunications.

Applicants assert that this application is subject to streamlined
processing under section 63.03(b)(1)(ii) of the Commission's rules
because PrairieWave, the transferee, is not a telecommunications
provider.[^1]

PrairieWave intends to acquire control of two of McLeodUSA's operating
subsidiaries: Dakota Community Telephone, Inc. ("DCT") and McLeodUSA
Telecom Development, Inc. ("MTDI"). DCT is an independent local exchange
carrier that provides domestic interstate telecommunications services
within various exchanges in South Dakota. MTDI is a competitive local
exchange carrier that provides domestic interstate telecommunications
services in Iowa, Minnesota and South Dakota. Pursuant to a stock
purchase agreement, PrairieWave will acquire 100 percent of the capital
stock of McLeodUSA Community Telephone, Inc. ("MCT"),[^2] which is the
parent company of DCT, and 100 percent of the capital stock of MTDI.
Immediately following consummation of the transfer of control,
PrairieWave will contribute 100 percent of the capital stock of MTDI to
MCT, as a result of which MTDI will become a direct subsidiary of
MCT.[^3]

McLeodUSA asserts that grant of this Application will serve the public
interest, convenience and necessity by promoting competition among
telecommunications carriers. Specifically, McLeodUSA asserts that
approval of the proposed transfer of control of the Subsidiaries to
PrairieWave will enable a new entrant to establish a competitive
presence in select geographic markets and to concentrate its resources
and expertise upon expanding upon and developing innovative and
diversified service offerings for consumers in these markets, and that
these enhancements will inure directly to the benefit of existing
customers of DCT and MTDI and consumers generally in the domestic
telecommunications marketplaces these carriers serve.

McLeodUSA states that approval of the transfer of control will also
enhance McLeodUSA's ability to strengthen its competitive position by
implementing long-term growth plans in its core markets. McLeodUSA
states that the transfer of control will contribute to increasing
McLeodUSA's operational flexibility and efficiency, as well as long-term
financial viability. Thus, according to McLeodUSA, the proposed transfer
of control will ensure the provision of innovative, high quality
telecommunications services to the public and should promote competition
in the U.S. domestic telecommunications service market.

**[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) Imani Ellis-Cheek, Telecommunications Division, International
    Bureau, 445 12^th^ Street, S.W., Room 6-A739, Washington, D.C.
    20554; email: <iellis@fcc.gov>; and

(5) 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]: 47 C.F.R. section 63.03(b)(1)(ii).

[^2]: MCT holds international Section 214 authorization to resell
    international public switched services between the United States and
    international points, but does not operate as a common carrier of
    international or domestic interstate telecommunications services.

[^3]: In a separate application, MCT requests authority pursuant to
    section 214 of the Act and sections 63.18(e)(1) and (e)(2) of the
    Commission's rules, to expand the international section 214
    authorization it currently holds to include global facilities-based
    authority and global resale authority to operate as a common carrier
    of communications services between the United States and
    international points.

[^4]: *See* 47 C.F.R. section 63.03(a).