Federal Communications Commission
News Media Information 202 / 418-0500
445 12th St., S.W.
Washington, D.C. 20554
November 1, 2012
DOMESTIC SECTION 214 AUTHORIZATION GRANTED
Domestic Section 214 Application Filed for the Transfer of Control of
Cequel Communications Holdings, LLC to Nespresso Acquisition Corporation
WC Docket No. 12-207
On July 23, 2012, Nespresso Acquisition Corporation (Nespresso) and Cequel Communications
Holdings, LLC (Cequel) (together, Applicants) filed an application pursuant to section 63.03 of the
Commission’s rules1 requesting approval for the transfer of control of Cequel to Nespresso.
On August 1, 2012, the Commission released a public notice accepting the application for
streamlined processing. 2 On August 15, 2012, the Department of Justice, including the Federal Bureau of
Investigation, with the concurrence of the Department of Homeland Security (collectively, the Executive
Branch Agencies), filed a letter requesting that the Commission defer action on this application while they
reviewed potential national security, law enforcement, and public safety issues.3 In response to the
request, the Wireline Competition Bureau removed the application from streamlined review.4 On October
31, 2012, the Executive Branch Agencies withdrew their request to defer action, stating 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 resulting entity would have a market share in the U.S. interstate interexchange market of
less than 10 percent and 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
1 47 C.F.R § 63.03; see
47 U.S.C. § 214.
2 Domestic Section 214 Application Filed for the Transfer of Control of Cequel Communications Holdings, LLC to
Nespresso Acquisition Corporation
, WC Docket No. 12-207, Public Notice, 27 FCC Rcd 8961 (WCB 2012).
3 Letter from Joanne P. Ongman, U.S. Department of Justice, to Marlene H. Dortch, FCC, WC Docket No. 12-207
(filed Aug. 15, 2012).
4 Notice of Removal of Domestic Section 214 Applications From Streamlined Treatment
, WC Docket No. 12-207
and 12-215, Public Notice, 27 FCC Rcd 10121 (WCB 2012).
5 Letter from Ty Brown, U.S. Department of Justice, to Marlene H. Dortch, FCC, WC Docket No. 12-207 (filed Oct.
a party to the transaction. In addition, the Applicants are not dominant with respect to any domestic
Consistent with Commission precedent, the Wireline Competition Bureau accords the appropriate
level of deference to the Executive Branch Agencies’ expertise on national security and law enforcement
issues.7 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, 47 C.F.R. § 0.291, the Wireline Competition Bureau
hereby grants the application discussed in this Public Notice.
Pursuant to section 1.103 of the Commission’s rules, 47 C.F.R. § 1.103, the grant is effective
upon release of this Public Notice. Petitions for reconsideration under section 1.106 or applications for
review under section 1.115 of the Commission’s rules, 47 C.F.R. §§ 1.106, 1.115, may be filed within 30
days of the date of this Public Notice.
For further information, please contact Jodie May at (202) 418-0913, Competition Policy
Division, Wireline Competition Bureau.
6 47 C.F.R. 63.03(b)(2)(i).
7 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.