**DA 02-2139**

**Released: September 3, 2002**

**DOMESTIC SECTION 214 APPLICATION FILED FOR CONSENT TO TRANSFER CONTROL
OF ILLINOIS CONSOLIDATED TELEPHONE COMPANY AND MCLEODUSA PUBLIC
SERVICES, INC. TO HOMEBASE ACQUISITION CORP.**

**STREAMLINED Pleading Cycle Established**

**WC Docket No. 02-257**

On August 13, 2002, McLeodUSA Incorporated ("McLeodUSA") and Homebase
Acquisition Corp. ("Homebase") (McLeodUSA and Homebase, together,
"Applicants"), pursuant to section 214 of the Communications Act of
1934, as amended, 47 U.S.C. § 214, filed an application for approval to
transfer control of McLeodUSA's indirect, wholly-owned subsidiaries,
Illinois Consolidated Telephone Company[^1] ("ICTC") and McLeodUSA
Public Services, Inc.[^2] ("MPS" and ICTC, together, "the McLeodUSA
Subsidiaries"), to Homebase.

Applicants assert that this application is subject to streamlined
processing under section 63.03(b)(1)(ii) of the Commission's rules
because the transferee, Homebase, is not a telecommunications
provider.[^3] Homebase is a newly-formed, privately-held Delaware
corporation whose principal business is telecommunications. However,
applicants state that Homebase does not currently provide service in any
geographic areas. Homebase intends to acquire control of ICTC and MPS by
purchasing 100 percent of the capital stock of ICTC and 100 percent of
the capital stock of MPS.

McLeodUSA provides, through its operating subsidiaries, integrated
communications, including interstate services, primarily in twenty-five
Midwest, Southwest, Northwest, and Rocky Mountains states.[^4]

Applicants assert that grant of this application will serve the public
interest, convenience and necessity by promoting competition among
telecommunications carriers. Specifically, applicants state that
approval of the proposed transfer of control of the McLeodUSA
subsidiaries to Homebase will enable a new entrant to establish a
competitive presence in select geographic markets and to concentrate its
resources and expertise in providing innovative and diversified service
offerings for consumers in these markets.

Applicants state that approval of this application will also enhance
McLeodUSA's ability to strengthen its competitive position by
implementing its long-term growth plans in its core markets. The
applicants also assert that the transfer of control of the McLeodUSA
subsidiaries to Homebase will contribute to increasing McLeodUSA's
operational flexibility and efficiency, as well as long-term financial
viability. Applicants state that the proposed transfer of control will,
therefore, ensure the continued provision of innovative, high quality
telecommunications services to the public and should promote competition
in the 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.[^5] 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) Dennis Johnson, Competition Policy Division, Wireline Competition
    Bureau, 445 12^th^ Street, S.W., Room 6-A461, Washington, D.C.
    20554; e-mail: <dcjohnson@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 Dennis Johnson, Competition Policy, Wireline Competition Bureau at
(202) 418-0809.

\- **FCC** -

[^1]: ICTC is an independent incumbent local exchange carrier that owns
    and operates telecommunications facilities over which it provides
    local exchange, exchange access and competitive telecommunications
    services in east central Illinois.

[^2]: MPS provides competitive telecommunications services, including
    resold intrastate interexchange and alternate operator services, and
    also operates private payphones, in a handful of states, including
    Illinois, Indiana, Missouri, Ohio, and Wisconsin.

[^3]: 47 C.F.R. § 63.03(b)(1)(ii).

[^4]: McLeodUSA's operating subsidiaries that provide regulated
    telecommunications services, excluding ICTC and MPS, include
    McLeodUSA Telecommunications Services, Inc., Dakota Community
    Telephone, Inc. and McLeodUSA Telecom Development, Inc.

[^5]: *See* 47 C.F.R. § 63.03(a).