**DA 06-2569**

**Released: December 21, 2006**

**DOMESTIC SECTION 214 APPLICATION FILED FOR THE ACQUISITION OF CERTAIN
ASSETS OF CAUSE BASED COMMERCE INCORPORATED AND POWERNET GLOBAL
COMMUNICATIONS**

**STREAMLINED Pleading Cycle Established**

**WC Docket No**. **06-224**

**Comments Due: January 4, 2007**

**Reply Comments Due: January 11, 2007**

On November 30, 2006, Cause Based Commerce Incorporated ("CBCI") and
PowerNet Global Communications ("PNG") (collectively, the "Applicants")
filed an application pursuant to sections 63.04 and 63.24(e) of the
Commission's rules[^1] seeking authority to transfer certain assets of
PNG to CBCI.[^2]

Applicants submit that this transaction is entitled to presumptive
streamlined treatment under 63.03(b)(2)(i) of the Commission's rules
because, post-consummation: (a) CBCI will have a market share in the
interstate, interexchange market of less than 10 percent; (b) CBCI will
provide competitive services exclusively in areas served by a dominant
local carrier not a party to the transaction; and (c) neither of the
Applicants is dominant with respect to any domestic service.[^3]

PNG, an Ohio company, provides resold local, intraLATA toll and long
distance services in forty-eight states to approximately 400,000
customers, both business and residential. The following individuals hold
10% or more of PNG's stock: Bernie Stevens (32.3%); Larry Moses (17.2%);
and Hubert Dudley (14.0%).

CBCI, an Ohio corporation, provides interexchange telecommunications
services in twelve states, and has certifications pending to provide
such services in eighteen additional states.[^4] By year's end, CBCI
expects to be certified in the 48 contiguous states. Three individuals,
all of whom are U.S. citizens, hold a 10 percent or greater ownership
interest in CBCI: Timothy Bischel (33.28%), Mark J. Eicher (33.28%), and
David W. Condit (33.28%). None of these individuals hold other equity
interests in telecommunications carriers in excess of 10 percent. No
other person or entity holds a 10 percent or greater direct or indirect
interest in CBCI.

Pursuant to an agreement and plan of merger, dated September 26, 2006,
CBCI will acquire a portion of the PNG assets/customer base[^5] located
across the lower 48 contiguous states. CBCI will provide long distance
telecommunication services to the transferred PNG customers pursuant to
its own Section 214 authorizations, and PNG will continue to provide
service to its remaining customers pursuant to its existing
authorizations.

The Applicants state that the proposed transfer of customers to CBCI
will serve the public interest. Applicants maintain that the proposed
transaction is not expected to result in any loss or impairment of
service to any of the PNG customers that CBCI will acquire. Applicants
assert that these customers will continue to receive their existing long
distance services at the same rates and under the same service options.
Applicants state that the only material change will be in the customers'
long distance service provider.

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

The transfer of assets 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 assets
application if, upon further examination, it is determined to be
defective and not in conformance with the Commission's rules and
policies. Pursuant to sections 1.415 and 1.419 of the Commission's
rules, 47 CFR §§ 1.415, 1.419, interested parties may file **comments on
or before January 4, 2007** and **reply comments on or before January
11, 2007**.[^6] Unless otherwise notified by the Commission, Applicants
are permitted to transfer the assets and related control on the 31^st^
day after the date of this notice.[^7] Comments may be filed using: (1)
the Commission's Electronic Comment Filing System (ECFS), (2) the
Federal Government's eRulemaking 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 eRulemaking 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.

```{=html}
<!-- -->
```
-   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 (although we continue to experience delays in receiving 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).

**You may submit comments, identified by the above noted docket number,
by any of the following methods:**

-   Federal eRulemaking Portal:
    [http://www.regulations.gov](http://www.regulations.gov/). Follow
    the instructions for submitting comments.

-   Federal Communications Commission's Web Site:
    <http://www.fcc.gov/cgb/ecfs/>. Follow the instructions for
    submitting comments.

-   People with Disabilities: Contact the FCC to request reasonable
    accommodations (accessible format documents, sign language
    interpreters, CART, etc.) by e-mail: <FCC504@fcc.gov> or phone:
    202-418-0530 or TTY: 202-418-0432.

**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) Myrva Charles, Competition Policy Division, Wireline Competition
    Bureau, 445 12th Street, S.W., Room 5-C230, Washington, D.C. 20554;
    email: <myrva.charles@fcc.gov>;

(3) Alex Johns, Competition Policy Division, Wireline Competition
    Bureau, 445 12th Street, S.W., Room 5-C317, Washington, D.C. 20554;
    e-mail: <alexis.johns@fcc.gov>;

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

(5) 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 CYB402, 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 Myrva Charles at (202) 418-1506,
or Alex Johns at (202) 418-1167.

\- **FCC** -![](media/image2.wmf){width="6.944444444444445e-4in"
height="6.944444444444445e-4in"}

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

[^2]: Applicants are also filing an application for transfer of control
    associated with authorization for international services. Any action
    on this domestic 214 application is without prejudice to Commission
    action on other related, pending applications. Applicants filed a
    supplement to their application on December 19, 2006. *See* Cause
    Based Commerce and PowerNet Global Domestic 214 Application, WC
    Docket No. 06-224 (filed Dec. 19, 2006).

[^3]: 47 C.F.R. § 63.03(b)(2)(i).

[^4]: CBCI is certified and providing service in the following states:
    Indiana Iowa, Kentucky, Michigan, Minnesota, Montana, North
    Carolina, Ohio, Texas, Virginia, Washington, and Wisconsin. CBCI's
    certification is pending in the following states: Illinois,
    California, Oregon, Missouri, Maryland, Louisiana, Florida,
    Pennsylvania, New York, Arizona, Massachusetts, Connecticut, New
    Hampshire, Tennessee, Kansas, Georgia, Colorado, New Jersey.

[^5]: CBCI will acquire approximately 16,000 long distance service
    customers from PNG.

[^6]: *See* 47 C.F.R. § 63.03(a).

[^7]: Such authorization is conditioned upon receipt of any other
    necessary approvals from the Commission in connection with the
    proposed transaction.