**DA 07-721**

**February 15, 2007**

**DOMESTIC SECTION 214 AUTHORIZATION GRANTED**

Application for Transfer of Control of Arrival Communications, Inc. to
U.S. TelePacific Corp.

WC Docket No. 06-232

**By the Chief, Wireline Competition Bureau:**

On December 8, 2006, Arrival Communications, Inc. ("Arrival") and U.S.
TelePacific Corp. ("TelePacific") (together, the "Applicants"), filed an
application, pursuant to section 63.04 of the Commission's rules,[^1]
requesting authority to transfer control of Arrival to TelePacific.[^2]

The Commission released a public notice accepting this application for
streamlined processing on January 11, 2007.[^3] On January 25, 2007, the
Department of Homeland Security ("DHS"), with the concurrence of the
Department of Justice ("DOJ"), including the Federal Bureau of
Investigation ("FBI") (collectively, the "Executive Branch Agencies")
filed with the Commission a letter requesting that the Commission defer
grant of this application while the Executive Branch Agencies address
potential national security, law enforcement, and public safety
issues.[^4] On February 9, 2007, the Executive Branch Agencies withdrew
their January 25, 2007 request to defer action on the application noting
that they have no objection to the application.[^5]

The Wireline Competition Bureau finds, upon consideration of the record,
that grant of the application will serve the public interest,
convenience, and necessity. Upon consummation of the transaction, the
Applicants and their affiliates will have a market share in the
interstate, interexchange market of less than 10 percent, and will
provide competitive telephone exchange services or exchange access
services exclusively in geographic areas served by a dominant local
exchange carrier that is not a party to the transaction. In addition,
none of the Applicants or their affiliates are dominant with respect to
any service.

Consistent with Commission precedent, the Bureau accords the appropriate
level of deference to the Executive Branch Agencies' expertise on
national security and law enforcement issues.[^6] Therefore, pursuant to
section 214 of the Communications Act of 1934, as amended, 47 U.S.C.
§ 214, and section 0.291 of the Commission's rules,[^7] the Wireline
Competition Bureau hereby grants the application discussed in this
Public Notice.

Pursuant to section 1.103 of the Commission's rules, the grant is
effective upon release of this Public Notice.[^8] Petitions for
reconsideration under section 1.106 or applications for review under
section 1.115 of the Commission's rules may be filed within 30 days of
the date of this Public Notice.[^9]

For further information, please contact Gail Cohen at (202) 418-0939.

> -- FCC --

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

[^2]: Applicants also filed applications 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.

[^3]: *Domestic Section 214 Application Filed For the Transfer of
    Control of Arrival Communications, Inc. to U.S. TelePacific Corp.*,
    WC Docket No. 06-232, Public Notice, DA 07-56 (rel. Jan. 11, 2007).

[^4]: *See* Letter from Brandt Pasco, Deputy Director, Foreign Financial
    and Investment Issues, United States Department of Homeland
    Security, to Marlene H. Dortch, FCC, WC Docket No. 06-232 (filed
    Jan. 25, 2007); *Notice of Removal of Domestic Section 214
    Application from Streamlined Treatment*, WC Docket No. 06-232,
    Public Notice, DA 07-533 (rel. Feb. 2, 2007).

[^5]: *See* Letter from Stephen Heifetz, Director, Foreign Financial and
    Investment Issues, United States Department of Homeland Security, to
    Marlene H. Dortch, FCC, WC Docket No. 06-232 (filed Feb. 9, 2007).

[^6]: The Commission considers national security, law enforcement,
    foreign policy, and trade policy concerns when analyzing a transfer
    of control or assignment application in which foreign ownership is
    an issue. *See Amendment of the Commission's Regulatory Policies to
    Allow Non-U.S. Licensed Satellites Providing Domestic and
    International Service in the United States*, Report and Order, 12
    FCC Rcd 24094, 24170-72, paras. 178-82 (1997); *Rules and Policies
    on Foreign Participation in the U.S. Telecommunications Market*,
    Report and Order and Order on Reconsideration, 12 FCC Rcd 23891,
    23919-21, paras. 61-66 (1997) ("*Foreign Participation Order*"),
    Order on Reconsideration, 15 FCC Rcd 18158 (2000). In assessing the
    public interest, the Commission considers the record and accords the
    appropriate level of deference to Executive Branch expertise on
    national security and law enforcement issues. *See Foreign
    Participation Order*, 12 FCC Rcd at 23919-21, paras. 61-66.

[^7]: 47 C.F.R. § 0.291.

[^8]: *See* 47 C.F.R. § 1.103.

[^9]: *See* 47 C.F.R. §§ 1.106, 1.115.