1 Il1 I Il lllll Ill I1I I1 Control Number: Ill Il1 II nu Item Number: 387 Addendum StartPage: 0
2 SWIDLER BERLIN SHEREFF FRIEDMAN, LLP THE WASHINGTON HARBOUR 3000 K STREET, NW, SUITE 300 WASHINGTON, DC TELEPHONE (202) FACSIMILE (202) \~ \Y/w.SWI Dl.4 W.CO.LI NEW YORK OFFICE THE CHRYSLER BUILDING 405 LEXINGTON AVENUE NEWYORK, t TEL.(212) FAX (2 12 ) VIA ELECTRONIC FILING & OVERNIGHT DELIVERY Cortney Todd, Filing Clerk Public Utility Commission of Texas 1701 N. Congress Avenue Austin, Texas ?+?J 47- c Re: Control No : Joint Notification of Teligent Services, Inc. and Startec Global Licensing Company Regarding Proposed Transfer of Long Distance Customer Accounts Dear Ms. Todd: Teligent Services, Inc. ( Teligent ) and Startec Global Licensing Company ( Startec ) (Teligent and Startec, together, the Parties ), through the undersigned counsel, hereby notify the Public Utilities Commission of Texas ( Commission ) of a proposed transaction whereby Teligent will transfer to Startec its commercial long distance customer base and associated customer account information (collectively, Customer Assets ). The Parties are each authorized to provide intrastate telecommunications services in the State of Texas. An original and three (3) copies of this filing are enclosed. Please date-stamp the enclosed extra copy of this notice and return it in the self-addressed, postage-paid envelope provided. As detailed below, following consummation of the transaction, Startec will provide services to the former long distance customers of Teligent pursuant to Startec s interexchange carrier registration to provide such services in Texas. The transfer of assets, therefore, will not involve a transfer to Startec of Teligent s Service Provider Certificate of Operating Authority ( SPCOA or Certificate ). The proposed transfer, moreover, will be virtually transparent to Teligent s Texas customers in terms of the rates and terms and conditions of service that these customers currently receive. I Although Teligent holds an SPCOA, it does not provide local exchange services to any customers in Texas.
3 Cortney Todd, Filing Clerk Page 2 The Parties further state as follows: A. Teligent Services, Inc. Description of the Parties Teligent Services, lnc. ( Teligent ) is a Delaware corporation with its principal place of business located at 460 Hemdon Parkway, Suite 100, Herndon, Virginia. Teligent is a wholly owned subsidiary of Teligent, Inc., a privately held Delaware corporation whose principal business is telecommunications. Teligent provides intrastate interexchange services in Texas as a non-dominant carrier and is authorized to provide local exchange services pursuant to Certificate No (As noted above, however, Teligent does not provide local exchange services to any customers in Texas.) Certificate No was originally granted to Microwave Services, Inc. in Docket No (Apr. 2, 1997). The Commission amended Certificate No , ultimately authorizing its transfer to Teligent pursuant to authorization granted in Docket Nos , 18469, and (issued, respectively, on Oct. 1, 1997, Feb. 5, 1998, and July 15, 1999). B. Startec Global Licensing Company Startec Global Licensing Company ( Startec ) is a Delaware corporation with its principal place of business located at Seven Locks Road, Potomac, Maryland. Startec is a wholly owned subsidiary of Startec Global Communications Corporation, a Delaware corporation whose principal business is telecommunication^.^ Startec is authorized to provide operator service provider and interexchange telecommunications services in Texas pursuant to a registration filed with the Commission. (See 1x ) Further information concerning Startec s technical, managerial and financial qualifications to provide service was submitted with its initial filing for authorization and is therefore a matter of public record. Startec respectfully requests that the Commission take official notice of that information and incorporate it by reference herein. 2 Teligent, Inc., a holding company, holds no regulatory licenses from this or any other regulatory commission. 3 Startec Global Communications Corporation, a holding company, holds no regulatory licenses from this or anv other regulatory commission.
4 Coi-tgey Todd, Filing Clerk Page 3 Contact Information Correspondence, notices and communications regarding this filing should be directed to the Parties respective counsel of record: and For Startec: For Teligent: Jeffrey Poersch General Counsel Startec Global Communications Corporation Seven Locks Road Potomac, MD Tel: (301) Fax: (240) Grace R. Chiu Brian M. McDermott Swidler Berlin Shereff Friedman, LLP 3000 K Street, NW, Suite 300 Washington, DC Tel: (202) Fax: (202) GRChiuO.swidlaw.com Description of the Transaction Startec has determined that the acquisition of Teligent s long distance customer base will enable it to expand its operations in a cost-efficient manner, thereby enhancing its competitive position and ability to provide integrated telecommunications services to customers in Texas as well as other states. To that end, Startec and Teligent have entered into an agreement whereby Startec will acquire Teligent s Texas long distance customer base, including associated customer account information (the Texas Customers ). The proposed transaction does not involve the transfer of network facilities or telecommunications equipment in the State of Texas. To ensure a seamless transition, the Texas Customers will be given not less than 30 days prior written notice of the proposed transfer, in compliance with the rules of the Federai Communications Commission ( FCC ) governing carrier-to-carrier customer base transfer^.^ 4 47 C.F.R (e).
5 Cortney Todd, Filing Clerk Page 4 Pursuant to Substantive Rule 130(k)(2), a copy of the customer notice is simultaneously being submitted to the Consumer Protection Division under separate cover. The Parties emphasize that the proposed transaction does not involve a transfer to Startec of Teligent s Certificate No Following closing, the services that the Texas Customers currently receive from Teligent will be provided by Startec pursuant to its IXC registration, as referenced above. As a result, the proposed asset transfer will be virtually transparent to the Texas Customers in terms of the rates and terms and conditions of service that these customers currently receive. Public Interest Considerations The proposed asset transfer will serve the public interest by enhancing competitive choices for Texas consumers. Specifically, the proposed transaction will benefit Texas consumers by accelerating Startec s ability to offer a broad range of telecommunications products and services. By enhancing Startec s ability to provide innovative and diversified services, and to expand its operations in a cost-effective manner, the asset transfer will enable Startec to strengthen its competitive position. These enhancements in turn will ultimately inure to the benefit of Texas consumers, by promoting innovation and furthering competition among providers in the Texas telecommunications marketplace. Texas consumers therefore will ultimately benefit from the proposed transfer of Teligent s assets to Startec. As discussed above, the Texas Customers will be given prior written notice of the transfer of their account to Startec, in compliance with the FCC s customer notice rules. Following the transfer, the Texas Customers will continue to receive services which will be consistent with the quality of services currently provided by Teligent and which will be supported by Startec s experienced and well-qualified management team. As a result, the proposed transfer will be virtually transparent to the Texas Customers in terms of the rates and terms and conditions of service that these customers currently receive. The public interest therefore will be served by the transaction. Please contact the undersigned should you have any questions concerning this matter. Respecthlly submitted, - Catherine Wang Grace R. Chiu Counsei for Teiigenl Services, Znc. cc: Jeffrey Poersch (Startec)