Goto Section: 63.02 | 63.04 | Table of Contents

FCC 63.03
Revised as of October 1, 2013
Goto Year:2012 | 2014
§  63.03   Streamlining procedures for domestic transfer of control
applications.

   Any domestic carrier that seeks to transfer control of lines or
   authorization to operate pursuant to section 214 of the Communications
   Act of 1934, as amended, shall be subject to the following procedures:

   (a) Public notice and review period. Upon determination by the Common
   Carrier Bureau that the applicants have filed a complete application
   and that the application is appropriate for streamlined treatment, the
   Common Carrier Bureau will issue a public notice stating that the
   application has been accepted for filing as a streamlined application.
   Unless otherwise notified by the Commission, an applicant is permitted
   to transfer control of the domestic lines or authorization to operate
   on the 31st day after the date of public notice listing a domestic
   section 214 transfer of control application as accepted for filing as a
   streamlined application, but only in accordance with the operations
   proposed in its application. Comments on streamlined applications may
   be filed during the first 14 days following public notice, and reply
   comments may be filed during the first 21 days following public notice,
   unless the public notice specifies a different pleading cycle. All
   comments on streamlined applications shall be filed electronically, and
   shall satisfy such other filing requirements as may be specified in the
   public notice.

   (b) Presumptive streamlined categories. (1) The streamlined procedures
   provided in this rule shall be presumed to apply to all transfer of
   control applications in which:

   (i) Both applicants are non-facilities-based carriers;

   (ii) The transferee is not a telecommunications provider; or

   (iii) The proposed transaction involves only the transfer of the local
   exchange assets of an incumbent LEC by means other than an acquisition
   of corporate control.

   (2) Where a proposed transaction would result in a transferee having a
   market share in the interstate, interexchange market of less than 10
   percent, and the transferee would provide competitive telephone
   exchange services or exchange access services (if at all) exclusively
   in geographic areas served by a dominant local exchange carrier that is
   not a party to the transaction, the streamlined procedures provided in
   this rule shall be presumed to apply to transfer of control
   applications in which:

   (i) Neither of the applicants is dominant with respect to any service;

   (ii) The applicants are a dominant carrier and a non-dominant carrier
   that provides services exclusively outside the geographic area where
   the dominant carrier is dominant; or

   (iii) The applicants are incumbent independent local exchange carriers
   (as defined in §  64.1902 of this chapter) that have, in combination,
   fewer than two (2) percent of the nation's subscriber lines installed
   in the aggregate nationwide, and no overlapping or adjacent service
   areas.

   (3) For purposes of (b)(1) and (2) of this paragraph, the terms
   "applicant," "carrier," "party," and "transferee" (and their plural
   forms) include any affiliates of such entities within the meaning of
   section 3(1) of the Communications Act of 1934, as amended.

   (c) Removal of application from streamlined processing. (1) At any time
   after an application is filed, the Commission, acting through the Chief
   of the Wireline Competition Bureau, may notify an applicant that its
   application is being removed from streamlined processing, or will not
   be subject to streamlined processing. Examples of appropriate
   circumstances for such action are:

   (i) An application is associated with a non-routine request for waiver
   of the Commission's rules;

   (ii) An application would, on its face, violate a Commission rule or
   the Communications Act;

   (iii) An applicant fails to respond promptly to Commission inquiries;

   (iv) Timely-filed comments on the application raise public interest
   concerns that require further Commission review; or

   (v) The Commission, acting through the Chief of the Wireline
   Competition Bureau, otherwise determines that the application requires
   further analysis to determine whether a proposed transfer of control
   would serve the public interest.

   (2) Notification will be by public notice that states the reason for
   removal or non-streamlined treatment, and indicates the expected
   timeframe for Commission action on the application. Except in
   extraordinary circumstances, final action on the application should be
   expected no later than 180 days from public notice that the application
   has been accepted for filing.

   (d) Pro forma transactions. (1) Any party that would be a domestic
   common carrier under section 214 of the Communications Act of 1934, as
   amended, is authorized to undertake any corporate restructuring,
   reorganization or liquidation of internal business operations that does
   not result in a change in ultimate ownership or control of the
   carrier's lines or authorization to operate, including transfers in
   bankruptcy proceedings to a trustee or to the carrier itself as a
   debtor-in-possession. 1 Under this rule, a transfer of control of a
   domestic line or authorization to operate is considered pro forma when,
   together with all previous internal corporate restructurings, the
   transaction does not result in a change in the carrier's ultimate
   ownership or control, or otherwise falls into one of the illustrative
   categories found in §  63.24 of this part governing transfers of
   control of international carriers under section 214 of the
   Communications Act of 1934, as amended.

   1  "Control" includes actual working control in whatever manner
   exercised and is not limited to majority stock ownership. "Control"
   also includes direct or indirect ownership or control, such as through
   intervening subsidiaries. See 47 CFR 63.09.

   (2) Any party that would be a domestic common carrier under section 214
   of the Communications Act of 1934, as amended, must notify the
   Commission no later than 30 days after control of the carrier is
   transferred to a trustee under Chapter 7 of the Bankruptcy Code, a
   debtor-in-possession under Chapter 11 of the Bankruptcy Code, or any
   other party pursuant to any applicable chapter of the Bankruptcy Code
   when that transfer does not result in a change in ultimate ownership or
   control of the carrier's lines or authorization to operate. The
   notification can be in the form of a letter (in duplicate to the
   Secretary). The letter or other form of notification must also contain
   the information listed in paragraphs (a)(1) through (a)(4) in §  63.04.
   A single letter may be filed for more than one such transfer of
   control. If a carrier files a discontinuance request within 30 days of
   the transfer in bankruptcy, the Commission will treat the
   discontinuance request as sufficient to fulfill the pro forma
   post-transaction notice requirement.

   (3) Notwithstanding any other provision in this part, any party that
   would be a domestic common carrier under section 214 of the
   Communications Act of 1934, as amended, including a carrier that begins
   providing service through a differently named subsidiary after an
   internal corporate restructuring, remains subject to all applicable
   conditions of service after an internal restructuring, such as rules
   governing slamming and tariffing.

   [ 67 FR 18831 , Apr. 17, 2002;  67 FR 21803 , May 1, 2002]

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Goto Section: 63.02 | 63.04

Goto Year: 2012 | 2014
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