Applications for Transfer of Control in
Mergers and Acquisitions
Telecommunications carriers seeking to transfer assets or corporate
control in mergers and acquisitions must first receive approval
from the FCC. The Commission examines the public interest
impact of a proposed domestic or international transaction.
Pursuant to Section
214 of the Communications Act of 1934, sections 63.03 and 63.04 of
the Commission's rules govern procedures for domestic transfer
of control/asset applications. The rules also:
- Provide guidance on pro forma transfers
- Provide for jointly-filed applications for domestic and international
services
- Describe six categories of transactions that are presumptively
accorded streamlined treatment resulting in an automatic grant
31 days following public notice of the application.
Carriers must file a discontinuance
application when an acquisition will result in a reduction
or impairment of service.
In any transaction, carriers acquiring all or part of another
carrier's subscriber base must notify subscribers and meet other
requirements in section 64.1120(e) of
the Commission's rules.
International mergers and acquisitions are subject to section 63.24 of
the FCC’s rules. International applications are reviewed
by the International Bureau.
|
